Assignment 1 Health Care Economics

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Assignment 1: Health Care Economics

The United States economy is shaped by relationships with employment, health coverage and cost. In a recession, some employers drop health care coverage or place restrictions on employee coverage. Employers may also reduce cost by changing benefits and cost-sharing provisions. Employees in low-wage positions, small businesses, and certain industries are more likely than others be uninsured when they lose their jobs. There is also a concern about the people who currently work but still cannot afford health care coverage. This paper will discuss how economics apply to the health care industry and what tools can be used to get a better understanding of what the patients’ needs and wants are.

Debate Whether or Not Economics Apply to Health Care.

Economics is the study of how individuals and societies choose to employ those resources: what goods and services will be produced, how they will be produced, and how they will be distributed among the members of society (Merriam-Webster, 2013). This theory applies to every industry and business. The health care industry would be no different. There are still goods and services that will need to be produced, management will still have to figure out how those goods and services will be produced, and how the goods and services will be distributed amongst society. Health economics are defined by who economists are, and what they do (Folland, Goodman, Stano, 2013). Health economics is broken into 3 categories of importance: the size of the contribution of the health sector to the overall economy, the national policy concerns resulting from the importance many people attach to the economic problems they face in pursuing and maintaining their health and the many issues that have a substantial economic element. It is known that the health economy has a large share of GDP in the US. It represents a substantial capital investment and a large and growing share of the labor force. People are...
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